A number of gold stocks surged in price on Thursday,
boosting several hedge funds. There is no apparent reason why
gold shares did so well, and it may well be a case of buying on
the dip, with many of the stocks at one or two-month lows.
There was also some speculation that weaker than expected
manufacturing numbers may have led some investors to lessen
their expectation that the Federal Reserve will raise interest
rates, which is good for gold. The price of metallic gold is
off more than 3 percent in just the past month.
For example, shares of Toronto-based Kinross Gold surged
4.76 percent on Thursday to close at $4.18. Top-ten holders
include East Setauket, New York-based
Renaissance Technologies and Greenwich, Connecticut-based
AQR, although their positions are not a major part of their
stock portfolios. However, Kinross stock is the third-largest
U.S. equity long of London-based Odey Asset Management, the
Shares of Toronto-based Yamana Gold jumped 5.5 percent to
close at $4.25. Yamana explores for gold, silver and copper.
AQR is Yamana’s eighth-largest shareholder.
Toronto-based Barrick Gold, which explores for gold, copper
and nickel, surged 4.6 percent to close at $17.80. Renaissance
is a major shareholder while New York-based Caxton Corp. had a
large position in call options at the end of June. The stock is
also the second-largest long in the very small U.S. stock
portfolio of London-based Sloane Robinson.
Interestingly, SPDR Gold Trust, an exchange-traded fund
designed to track the price of gold, was only up about 0.4
percent for the day. New York multistrategy firm
Eton Park Capital Management has a major position in the
call options on the ETF.
Shares of hedge fund favorite Charter Communications also
enjoyed a strong day. The cable and broadband
provider’s stock surged 4.5 percent to $262.82
after it was added to the Standard & Poor’s
500 late Wednesday. Inclusion means the huge amount of capital
invested in the S&P 500 had to buy the stock. At the end of
the second quarter, at least 68 hedge funds held the stock
among their top-ten holdings. Its largest shareholder is
TCI Fund Management while other major holders include
Lone Pine Capital, New York-based
Tiger Global Management and New York-based
Soroban Capital Partners.
Shares of another hedge fund favorite, Salesforce.com, fell
4.4 percent after the business software maker issued
disappointing guidance. At the end of the second quarter, at
least 71 hedge funds held a position in the stock.
Man Group named Brian Broesder and Westin Lovy as managing
directors. The pair were previously at South Norwalk,
Connecticut-based Bridge Lane Capital, which they co-founded in
2012. They will continue to manage the portfolios of Bridge
Lane, which currently has more than $125 million in committed
capital, specializing in private debt transactions with small
and lower middle-market companies in North America.
Barington Capital has named Brian Moss as a partner to head
up marketing and investor relations. He previously spent ten
years at Optima Fund Management. Moss replaces Marjorie Kaufman, who joined
the firm a year ago. She remains a partner but will now devote
her time to corporate governance, board diversity and active
engagement at the New York activist hedge fund firm. Barington
is up about 13 percent for the year.